Unchanged: Bank of the Republic kept interest rates at 9.5%
How to send your resume to the Bank of the Republic? Photo: César Melgarejo - El Tiempo
TL;DR
- The Bank of the Republic's board of directors maintained interest rates at 9.5% by majority vote.
- Annual inflation stood at 5.2% in December 2024, with core inflation also decreasing but remaining at 7%.
- Challenges to inflation control include higher producer price increases, a significant minimum wage hike, and rising inflation expectations.
- Economic growth is estimated at 1.8% for 2024 and 2.6% for 2025.
- External financial conditions, particularly in the US, are expected to become more restrictive, potentially impacting inflation.
- This decision marks a pause after a series of interest rate cuts that began in December 2023.